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BN Book Excerpt: Investment Clubs – How to Create Wealth Beyond Your Pay Cheque By Investing With Others by Tomie Balogun

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My first attempt to gain an understanding of the intricacies of investing started with reading the book, ‘Rich Dad, Poor Dad’. Digging further into his books series, I read the ‘Rich Dad’s Guide to Investing’. In this book, Robert Kiyosaki asked his rich dad what advice he would give an average investor, and he answered, “Don’t be average”.

Those words struck a chord with me the minute I read them. They described what I have set as a core value for myself for many years. Since that time, I have been on a quest to understand what it means to be average investor.

What does it mean to be an average investor? Here are two (2) ways you can be an average investor

1) An average investor invests without a plan.
An average investor invests in random investment opportunities that promise good returns. However, an educated investor has a plan, understands his/her risk tolerance level, and knows the investment options required to arrive at the defined destination. Investing is not a product; it is a plan.

2) An average investor thinks in terms of income and not net worth
Income earned can easily trickle away if not preserved. When you measure your wealth only in terms of the cash that sits in your bank account, you are susceptible to inflationary pressures and the volatility in the value of the currency in which your cash is kept.

However, if you think in terms of net-worth, your wealth is captured in investment vehicles (assets) that can appreciate and probably stand the test of time, in terms of value. Your net-worth is therefore composed mainly of the assets which you have preserved and accumulated your income in over time.

3) An average investor invests as an individual and not as a business owner
Investing as an individual—in your own name—is great, but not smart investing over time. The best way to invest is to have a registered business make investments or buy assets for you. This is what rich people do to protect their assets and save on tax. They build businesses that own assets and pay most of their business and personal expenses.

When I discovered investment clubs, I thought they were a perfect way to stop being an average
investor. An investment club offers you an opportunity to build up your net-worth over time with like
minded people.

How the Onans’ Broke Average
The Onans’ were a young couple living in the United Kingdom (UK). They were interested in putting the cash they earned to better use, but they had no experience investing. Not willing to give up because they didn’t have any experience investing, they decided to read up on different asset classes to see which one they would be comfortable with or, at least, could start with their little money.

In their own words, ‘’We chose to invest in the property market (real estate) because it seemed like a stable opportunity, but it didn’t take a long time to realize we didn’t have enough money to get started. However, we knew we had to find a way to generate passive income if we were ever going to be financially free’’.

As a young couple, they were presented with the option to spend years saving up to invest on their own, but after speaking with a few people who were in the same situation as they were, they decided to set up a joint venture. That was the beginning of their investment club.

Three (3) couples (6 members in total) decided to pool money, ideas and expertise with the help of appropriate UK property experts. Each member had strengths and interests which informed role delegations within the club. Each member handled a role they enjoyed and could perform effectively.

The roles included; researching location and type of properties, sorting out the best financial or mortgage companies, dealing with the property experts, planning and administration of the club”. In the first year of existence, they purchased 4 properties off-plan and below market value; 1 property in Essex, 2 properties in Manchester and 1 property in Leeds.

The investment club helped the Onans’ and other members get on the property ladder in the UK quicker than they would have if they had tried to invest individually. They started out with a plan and they broke average.

You can break average with an investment club
An investment club is a group of people who consolidate funds to invest in business opportunities as one entity. It offers members a great opportunity to share risks and rewards in a way that contributes to the growth of common wealth in the society.

An investment club offers everyone a win/win solution. If you consider your funds limited in anyway, you can start an investment club with friends and, together, you can take advantage of investing with the pooled funds.

Our story
On a cool summer evening, five friends and former MBA classmates met in the lobby of a prestigious hotel in Lagos. They had a mission and, together, they crafted a plan to collaborate and invest in fast growing small and medium businesses.

I was one of the five, and my goal was to collaborate my way to financial freedom. I knew all about saving and investing by myself, but I wanted more. I wanted leverage. I was intent on increasing the investment opportunities I could take advantage of, so that I could increase my chances of achieving financial freedom. I also believed it was a great opportunity to dedicate my professional skills and experience to help growing businesses gain access to capital and implement the right growth strategy.

My friends and I set out with the audacious goal to build wealth by providing medium- to long-term capital to small businesses. We started our investment club to enable the African dream—access to capital for entrepreneurs who can change the bleak African story. Looking back now, I realize we were green-eyed and, like many fresh MBA graduates, we were naïve enough to believe we could change the world. They say it is only those who believe they can change the world that do so. We were willing to take our chances.

Our investment club, Midas Capital, was established in 2013 and has invested in 4 companies and 2 short-term projects spanning four (4) industries in Nigeria. All the founding members are still active members of the club. We started our investment club because we were determined to go beyond our average means.

I look back and realise there is no way I could have achieved everything I have today with investing, if I had not started an investment club. It’s time to push the narrative beyond saving for 30 years and waiting till you retire to achieve financial freedom. You can collaborate to earn more income and create wealth beyond your pay-cheque with investment clubs today.

My book is available in the Kindle store on Amazon. We will have hard copies available in a few weeks, Click here to be the first to know once my book is available for purchase in Nigeria.

Tomie Balogun is a Certified Financial Education Instructor (CFEI) and is on a mission to teach working professionals and entrepreneurs how to take advantage of the power of many and start investment clubs. She is the co-founder of Midas Capital Ltd (her investment club) and also the founder of The Green Investment club, an online community of investors across 6 countries (UK, USA, Cameroun, South Africa, Dubai and Nigeria). Tomie is an MBA graduate of the Lagos Business School and her career spans four (4) industries: Value Added Technology, Telecommunications, Management Consulting and Banking. She is a speaker and has been featured on various media platforms including Bella Niaja, Arise TV, Punch Newspaper, She Leads Africa, Business Day Newspapers etc. Click here to get her free 7-email course, the beginner’s guide to investing,

18 Comments

  1. Beckie

    May 23, 2018 at 10:43 pm

    Hi Tomie,
    I would like to know when your book is available for purchase in Nigeria

  2. Dee

    May 24, 2018 at 9:27 am

    Me too

  3. Tawakalit

    May 24, 2018 at 1:29 pm

    This is great writing! I thought I’d get that out of the way.

    It was insightful the way you drew a parallel between investing by self as opposed to collaborating with others.

    I know your book will be an amazing resource, as you definitely have a lot of knowledge to share.

    I look forward to getting a copy!

  4. Dr.N

    May 24, 2018 at 1:51 pm

    Will def read this!

  5. Abby A

    May 24, 2018 at 6:15 pm

    This book is giving me sooo much life right now! Got my copy off amazon kindle and I have truly been blessed by the book so far. Without a doubt, this book will be my go to book for learning how to start my own investment club. I love the way Tomie Relates to her readers in simple terms. The knowledge she shares in this book is priceless. I have so many highlights in the ebook for things to remember. Please do yourself a favor and grab a copy. You will not regret it! While you are at it, sign up for green club where she teaches you the ins and out of investment and making your money work for you!

    Best,
    Abby A

  6. Ayotunde Odejayi

    May 25, 2018 at 5:13 am

    This is a great call to action for those new to investing and the uninitiated likewise. I fall into the latter and hope to get going soon enough. Looking forward to reading the book!

  7. Adenike

    May 26, 2018 at 8:18 am

    The book is enlightened, I can’t wait to get a copy. Also looking forward to seeing you on the book signing tour. Well done Mrs B

  8. Rosemary

    May 26, 2018 at 8:28 am

    Great read!!!

  9. TOBI

    May 26, 2018 at 8:30 am

    This is very insightful, glad you decided to share your knowledge and experience about investing. will definitely be purchasing my copy soon.

  10. Tega

    May 26, 2018 at 8:37 am

    So insightful, deep knowledge shared about investment

  11. Chiwendu chijioke

    May 26, 2018 at 8:43 am

    Honestly i found Tomi at the right time. I’ve been talking to my friends about ‘investing together’. I didn’t even have a proper term for it! Thank God for Tomi, an investment club is exactly what i need right now. I’ll definitely read the book. It doesn’t sound boring like most finance related texts usually are. Thanks Tomi.

  12. Orifie

    May 26, 2018 at 8:58 am

    Great read so far! Can’t wait to get the rest of it. Now is the time for the Nigerian investor – no more dulling! Well done Tomie!

  13. rabiat abdulkareem

    May 26, 2018 at 10:30 am

    I already pre ordered this book and with this excerpt I know I won’t be disappointed. This year I started my investment journey and realized i needed help, Tomi’s investment club idea seems like a great idea for me and every other civil servant who does not have enough funds but want to invest.

  14. oluwasegun kuteyi

    May 27, 2018 at 9:24 am

    A beginners guide and an experts reminder on the fundamentals of investing and wealth creation. Tomi brings to reality important lessons about investing and how success can be achieved by leveraging on the power of many. In her book, Tomi shares many personal and common experiences that each reader can relate to. Through investment clubs, Tomi proffers the key to unlocking the potentials in team work, bringing to bear the enormous possibilities that are achievable by pulling resources together.

  15. Tokunbo Adekoya

    May 27, 2018 at 12:33 pm

    Great excerpt. So easy to read and understand.

  16. Nnenna Fakoya-Smith

    May 27, 2018 at 11:31 pm

    Starting an investment club is one of he best financial decisions I have made, thanks to Tomie. Looking forward to owing a copy of your book as it is going to help my investment club move beyond average. Well done, Tomie!

  17. joy

    May 29, 2018 at 4:27 pm

    A concise read.However,what is the minimum for one to have to join an investment club?

  18. Tola

    May 30, 2018 at 12:54 pm

    This is really explicit. Your ability to break down investment for people who have no idea what investment is all about is impeccable.
    I’m definitely working on investing this year and you’ve been helpful.

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